For some, being a real estate investor is the main – if not only – source of income, so it would make sense to be overly cautious when considering whether it’s important to protect one’s property. The sweat, energy, time, and money – whether yours or a lender’s – could all go up in smoke (both literally and figuratively) if disaster strikes and you find yourself without a reliable in-case-of-emergency-plan. It might feel a bit like you’re jinxing yourself, but in this case, it might be best to err on the side of caution and imagine worst case scenarios.
Find the right insurance policy
If you’re living and investing in the Midwest, tornadoes area common occurrence. Down south, it’s hurricanes that plague cities year after year. Not all insurance plans are created equal and not all plans cover all disasters. Natural disasters take many forms and knowing what your region is prone to experiencing is important when deciding which insurance plans are best suited for your property.
Mother Nature can wreak devastating havoc, whether it’s a single-family home or an apartment complex, and while some plans cover the bare minimum, others can cover more than you need. While it may seem prudent to opt for the former and save money, sometimes it’s worth putting forth the extra dollars before disaster strikes.
Work with builders you know and trust
Sometimes it’s as simple as doing the heavy lifting in the beginning. When rehabbing a property, hire contractors you know are capable of doing reliable work without cutting corners. This can help reduce the stress and worry about a property’s integrity. Additionally, there are contractors who specialize in renovating homes that have experienced natural disasters (i.e. someone who can remove water damage from homes before mildew sets in would be a great person to know in Florida).
Adding the bells and whistles
Perhaps literally. California is prone to wildfires so it would make sense for investors in that state to install smoke detectors and fire extinguishers to their properties. Southern states on the water like Louisiana or Florida are always in the direct path of hurricanes, making renovation upgrades, like hurricane resistant windows or storm shutters, critical investment choices.
It may feel like you’re harnessing negative energy in what is an exciting moment in your investment career but being prepared for worst case scenarios can help protect your property when you least expect things to go awry. If you’ve got your business plan in place, insurance plans and all, and you’re ready to discuss your next investment opportunity, contact Temple View today.